Regulatory Fatigue Syndrome: Identifying the Symptoms and Treating the Patient

Donald L. Norman, Jr. and Andrew K. Strimaitis

During the annual Bank Director Bank Executive & Board Compensation conference that was held recently in Chicago, Illinois, peer exchange
sessions revealed that board members and executives alike are struggling
to keep pace with an industry that continues to change.

In the directors’ peer exchange meetings, directors
often said that trying to keep up with the changing regulatory
environment is as distracting as it is fatiguing.

This year’s conference seemed focused on the
stabilizing market, and from a director’s standpoint, establishing best
practices for approving, monitoring and maintaining appropriate
compensation programs, rather than on technical updates as in years
past. While all this can make you feel like you’re battling the
flu—proper “diagnosis and treatment” can help directors through this
malady.